Security | Interest Rates |
91 – Day Bill | 12.4925% |
182 – Day Bill | 13.2155% |
2 – Year Term Note | 17.5000% |
Short-term government of Ghana Treasury bills rates were mixed this week ahead of the release of a monetary policy report where uncertainties clouding Ghana’s inflation outlook is likely to mount pressures on the Monetary Policy Committee to stall the base rate at 13.5% for the second consecutive time.
The 91-day bill failed to build on previous weeks’ gains as it declined this week, ending two weeks of rally. It dipped to 12.4925% this week from 12.4946% posted last week.
The yield on the 182-day bill registered an uptick as it recovered from last week’s loss. It gained by 4 basis points (bps) to 13.2155% from 13.1734% recorded last week.
Week-on-Week Changes
Term | Previous | Current | Change | Percentage Change | Year-to-Date |
91 – Day | 12.4946% | 12.4925% | 0.00 | -0.02% | -11.37% |
182 – Day | 13.1734% | 13.2155% | 0.04 | 0.32% | -6.60% |
2 – Year | 17.2500% | 17.5000% | 0.25 | 1.45% | -5.41% |
Auction results from Bank of Ghana (BoG) tender 1765 showed that for the third consecutive time demand came in weaker than expected as investors grow weary of the widening disparity between inflation figures and short-term Treasury yields.
A total of GHC 1,151.21 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,290.00 million. Constrained by a tight financing gap, the government accepted all bids tendered.
A two-year term note was also issued this week as part of the government’s issuance schedule where the government sought to raise GHC 2,500 million from the domestic market. The medium-term paper was largely undersubscribed as only GHC 926.78 million worth of bids was tendered despite the rate on the paper climbing by 25 bps from 17.2500% at its last issuance date in early August to 17.5000%. The government accepted GHC 916.78 million worth of bids out of the total bids submitted.
Next week, the government will be seeking to raise a total of GHC 972.00 million from 91-day, 182-day, and 364-day bills.